Crypto Predictions For 2019: ETFs Not Approved, Securities To Replace Utility Tokens, And More
2018 has been a year which broke the hopes and dreams of many crypto enthusiasts due to the bearish trend that lingered over the markets and the massive fall of prices.
But not everyone saw this as a negative period with some experts claiming that it was nothing more than a correction year in which high-quality coins survived, and the useless ones remained behind.
Now, let’s take a look at the most critical seven predictions for 019 regarding the crypto space. The predictions have been presented by Finextra.
After BTC’s price bottoms, there will be stagnation
Finextra notes that Bitcoin has been “the biggest asset bubble in history.”
According to the same history, after a collapse in an asset bubble, the recovery that comes will be really slow, and it can even be in fact a stagnation.
“Expect a collapse and consolidation throughout the market – miners, tokens, and coins,” they write.
Crypto ETFs, not approved in 2019
A lot of voices in the crypto space have been believing that the crypto ETF will turn out to be massive game changers because they will provide institutions access to a regulated product.
But, let’s not forget that the SEC still has enormous concerns about crypto exchange manipulation, digital custody risks, and fraud, so this might not happen too soon, according to the same online publication.
Security exchanges to replace traditional crypto exchanges
It’s true that there’s not security token exchange that features institutional grade or enough liquidity to support scale.
Finextra believes that this will change in 2019 and STOs will eventually become the go-to fundraising option.
In other words, Security Token Exchanges could replace traditional utility token exchanges.
ICOs are on their death bed
Finextra’s Romal Almazo writes that “more than half of ICOs from 2017 have already failed. I now expect this market to come close to near-death as demand shifts to regulated Security Token offerings (STO).”
As a conclusion, the ICO demand will be limited to a smaller section of the retail market.
Big financial institutions to explore tokenization of assets
Finextra’s author expects to see the entry of big names in the financial business beyond NASDAQ, Fidelity and the Swiss Stock Exchange.
More institutions will consider the tokenization of assets.
Insurance of cryptos to increase
The publication also predicts that there will be an increasing insurance coverage of crypto exchanges and the digital custodians for cold storage.
“Lloyds of London announced their intent to do this back in August, and I expect more mainstream players to follow suit in 2019,” Almazo notes.
Banning of cryptos CFDs in the retail market
The last prediction is that in 2019 the crypto CFDs in the retail market will be banned.
It’s important to acknowledge that the UK taskforce on Crypto Assets have already offered a massive hint that they will be banning the products.